"The potential for the continuation of deterioration in the market means we are not in a position to confidently predict the second half performance," Ms Morphet said.

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The company will now be restructured, folding smaller brands to cut costs and shutting down some clothing manufacturing in Australia.

"Unfortunately these changes will necessitate 1,850 jobs losses in Australia over an 18-month period including 1,200 in clothing manufacturing," she said.

"The reduction in complexity will deliver the future strength, growth, profitability and sustainability of the business - for our shareholders and employees."

Manufacturing will shut down at seven sites across the country, with 1,200 redundancies to be made over the next 18 months.

"All entitlements of affected staff will be met," Ms Morphet said.

The Textile, Clothing and Footwear Union (TCFU) slammed the company's decision and called for urgent talks with the government to save the jobs.

TCFU national secretary Michele O'Neil said the decision was a devastating blow to workers, their families and the industry.

"We are not talking just the 1,850 job losses announced today, the likely spin-off effect on suppliers and other companies in the industry could well see thousands more jobs lost."

Ms O'Neil said the union does not accept the complete closure of the sites is necessary, after the federal government pumped millions of dollars of assistance into it over the past few years.

The sites to be closed are Cessnock (83 redundancies), Unanderra (207), Wentworthville (233), and Bellambi (74), all in NSW, West End, Queensland (56), Nunawading (255) and Coolaroo (298), both in Victoria.

These sites manufacture the Bonds, CTE, Holeproof, Hosiery and King Gee brands.